Economic growth is the path to prosperity in the state

Any economic environment can not be at rest. It has the ability to actively influence any changes in the company's activities. Thus such influence can be both positive, and negative. The guarantee of effective functioning of a business entity is its ability not only to analyze, but also to forecast any changes in the economic environment and be able to adapt to them.

Economic growth is one of the state's goals, implying an increase in the economic potential of the economy, an increase in the national product calculated per capita, and the achievement of a high subsistence level of citizens.

Economic growth brings concrete benefits to the business sector. This is the discovery of new market alternatives in a developing economy.

The general state of the economy can have a significant impact on the ability of consumers to create solvency and demand, as a result of which a certain cost for consumed resources appears. With economic decline, the business entity significantly reduces the volume of finished products in warehouses, reduces production, while reducing the number of employees.

Both at the level of individual companies and in the state as a whole, economic growth is the increase in financial results and indicators using tools such as extensification and intensification.

So, extensive economic growth is an increase in the economy's performance due to additional involvement in the production of labor, additional work resources and even the construction of new production facilities.

Intensive economic growth is a process in which growth is achieved through the qualitative renovation of production capacities using new advanced technologies.

Extensive methods of growth in the economic sphere have a number of negative properties that affect production in the future. This, first, is the uneconomic use of resources due to the increasing amount of their consumption. Secondly, in connection with the additional construction of new production facilities, the likelihood of increasing environmental pollution increases. The only positive moment when using this tool to achieve positive dynamics of economic indicators is new jobs due to the increase in staff, which contributes to a significant reduction in unemployment.

The positive properties of an intensive method of economic growth include:

- capital intensity, at which production growth is achieved by increasing the volume of output at constant costs;

- savings-saving characterizes the excess of the growth rate of production over the growth rate of all resources that provide it.

The growth of production volumes only through the modernization (improvement) of factors of production provides only intensive economic growth. This is the necessary tool that facilitates the introduction of new technologies in the production process, allowing the use of natural resources to make more economical, rational, and also monitoring the continuous improvement of the skills of workers. Improvement of economic indicators is achieved by increasing the return on assets of the business entity. In other words - to achieve an increase in the output of finished products, there is no need to build another plant. A positive result can be obtained with the usual reconstruction of the existing production.